The 39-count indictment, filed earlier this month in Northern California and unveiled this week, sometimes sounds like a scenario: the charges against Brockman include the operation of a complex network of foreign companies and bank accounts; use of tax-free taxable income to purchase a luxury yacht called “Turmoil;”; create an encrypted e-mail system to communicate with employees using code names such as “Bonefish” and “Snapper;” request of the money manager to attend a “money laundering conference” under the name of the person; and persuading the same money manager to destroy documents and electronic media with shredders and hammers.
“Apart from the amount in dollars, I have not seen such a pattern of greed or concealment and concealment for 25 years as a special agent,” said Jim Lee, head of the criminal investigation department of the US Internal Revenue Service, during a press conference.
“We look forward to defending him against these allegations,” Catherine Kenny, Brockman’s lawyer, told CNN Business. Kenilly is a former Assistant Attorney General for the U.S. Department of Justice’s Department of Taxation.
A Reynolds & Reynolds spokesman said the indictment focused on activities that Brockman was engaged in “outside of his professional duties with Reynolds & Reynolds,” according to a statement provided by CNN Business. “The company is alleged to have committed no wrongdoing and we are confident in the integrity and strength of our business.”
The prosecution also alleges that Brockman took steps such as asking employees to make data records and using encrypted communications to conceal the alleged scheme. It is also noted that Brockman fraudulently bought nearly $ 68 million of debt securities of his company, keeping insider information about the company.
If Brockman is convicted, he faces a “significant period of imprisonment,” authorities said, as well as restitution and confiscation of the crime.
Smith of Vista Equity Partners has claimed responsibility for its role in the alleged tax evasion scheme and agreed to a non-liability agreement, officials said. Vista Equity Partners declined to comment.
Officials say the 57-year-old Smith hid money in offshore accounts in Belize and Nevis. Smith used his tax-free income to buy a holiday home in Sonoma, ski resorts in the French Alps and make charitable donations, including maintaining a home in Colorado for downtown children and injured veterans, authorities said. Under the agreement with the Department of Justice, Smith will pay $ 139 million in taxes and fines, waive his claim for a refund of $ 182 million and pay interest, but will avoid prosecution.
“It’s never too late to tell the truth. Smith committed serious crimes, but he also agreed to cooperate,” said US Attorney David Anderson. “Smith’s agreement to cooperate put him on a path far from being blamed.”